Home Alts News Bryan Energy Launches $25 Million Oil & Gas Offering

Bryan Energy Launches $25 Million Oil & Gas Offering


Bryan Energy, an oil and gas company based in Canonsburg, Pennsylvania, launched its 38th private placement, a $25 million limited partnership with interests offered at $25,000 per unit and an option to purchase fractional units in $5,000 increments. The partnership will be offered on a best effort basis and will close on or before December 31, 2016.

Bryan Energy is drilling in the Clinton-Medina formation in Portage, Stark, Summit and Geauga counties in Ohio, concentrating in areas that produce primary oil, the company said. The wells are positioned near existing pipelines to expedite the hook-up process, and are located in areas with a history of oil production, as well as some natural gas production.

An oil and gas investment provides a general partner investor with an 80-90 percent intangible drilling cost write-off against ordinary income in the first year of investment with anticipated monthly cash distributions to follow in the preceding year. Their structure pledges 100 percent subordination of the managing general partners interest until investors receive 100 percent cash payback.

“The industry is now in a time of decreased cost and increasing energy prices. Drilling has substantially declined over the past two years, which caused production and inventories to decline and in turn has dramatically reduced the cost of drilling,” said Richard Bryan, president of Bryan Energy.

According to the company, another advantage of an oil and gas investment is the depreciation of tangible equipment costs that can be deducted over a 7-year cost recovery period beginning in the month the equipment is put into service. Finally, the IRS Code provides for a depletion deduction which is currently 15 percent of gross production revenues for the life of the partnership.

Bryan Energy has more than 40 years’ experience in drilling and development of oil and gas wells. The company currently has more than 600 working interest wells from 37 previous partnerships and 57 joint ventures sponsored by them or their affiliates.

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